Unterberger, S. Herbert; Koziara, Edward C.
October 1975
ILR Review;Oct75, Vol. 29 Issue 1, p26
Academic Journal
This article examines the escalation in the distribution of airline strike insurance benefits and costs under the Mutual Aid Agreement of the U.S. airline industry from 1958 through 1974. It was inferred that during the period, escalation occurred in four stages of the agreement. The first stage provided indemnity against strike losses where a strike was called either illegally or to enforce union demands in excess of the prestrike procedures. Stage two guaranteed airlines to receive no less than 25 percent of its normal air transport operating expenses during a strike. Stage three increased the former level of 25 percent to 50 percent during the first two weeks of a strike. The fourth stage increased the frequency of long strikes due to a substantial liberalization of benefits from stage three which encouraged the resistance of union demands for the approval of rising costs and benefits from airline strike insurance.


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